The bill amends Section 35-4-27 of the General Laws in Chapter 35-4, which is entitled "State Funds." The amendment involves the insertion of a new provision regarding indirect cost recoveries on restricted receipt accounts. Specifically, the bill stipulates that indirect cost recoveries of ten percent (10%) of cash receipts are to be transferred from all restricted-receipt accounts to the general fund as general revenues. However, the bill outlines exceptions where no transfer will occur, including cash receipts with restrictions received exclusively from nonprofit charitable organizations, from the assessment of indirect cost-recovery rates on federal grant funds, or through transfers from state agencies for the payment of debt service. The bill also lists numerous restricted receipt accounts that are exempt from the provisions of this section, ranging from health and human services funds to environmental management and public safety accounts.

The bill further includes an insertion that adds the Workers' Compensation Administrative Fund to the list of restricted receipt accounts that are not subject to indirect cost recoveries. The explanation provided by the legislative council clarifies that the purpose of this act is to exempt the Workers' Compensation Administrative Fund from the indirect cost recoveries that are typically applied to other restricted receipt accounts. The act is set to take effect upon passage.

Statutes affected:
531: 35-4-27